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My take:

Most gamers don't have the disposable income to buy every game that comes out. Maybe a game every couple of months, if they're lucky.

Nintendo games tend to be events. On Nintendo consoles, you can buy nothing but Nintendo games for a year and be content. Especially since they are apparently geared towards a younger audience. So games like Call of Duty or Assassin's Creed that do well on other consoles suffer on Nintendo consoles.

Plus, since the Wii, Nintendo hardware hasn't been the most powerful. It takes more than just a sharp image to sell on Nintendo consoles.